Sat. Jun 25th, 2022
eggs

Egg Supply Business: If you have good marketing skill you will love this business. The amount of startup depends on your finances, business plan. Although not gender based you will find many women in this venture.

Success depends on the size of your customer base, implementation. To build a customer base you need hard-work, networking, dedication. It is important to locate a good poultry farm with large number of birds. Major logistics are purchase of eggs, storage and transportation.

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eggs
eggs

Steps to Start Egg Supply Business

  1. Secure funding
  2. Have where to store the eggs
  3. Buy some empty paper egg crates
  4. Build a customer base
  5. Secure transportation-buy or lease truck
  6. Find a poultry egg production farm
  7. Bulk purchase the eggs
  8. Transportation
  9. Sell to customers

Pros

The business format is simple, easy to implement. You can don’t need lots of cash to venture into the business, startup is as low as N70, 000 naira ($200) to N2 million.it is possible to earn¼ profit margin on supplies.

Cons

The business is highly saturated, competitive and demanding. Success depends on your marketing skill and ability to find customers. Transportation costs reduces the profit margin. Make sure you source directly from farms, avoid open market eggs.

Startup Costs Egg Supply Business

Startup costs depends on the size and scope of the enterprise. Large egg suppliers buy heavy-duty vans or buses for easy movement of eggs. They also rent a shop, pay driver, store attendant, delivery boy. This may cost several million naira including cost of eggs and inventory.

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Costs

  • Used vans or buses – N2 million naira
  • Store lease – N150,000 a year
  • pay driver – N360,000 a year
  • store attendant – N240,000 a year
  • cost of eggs at 850 each 100 crates- N85,000
eggs
eggs

Funding

Secure funds through target savings or borrow from friends and family. To reduce costs use your vehicle for transportation. Start small then gradually build a customer base to and meet the demand. Other funding sources are small business loans, cooperatives, crowd funding.

Equipment

Equipment needed are delivery van or bus, paper egg crates. Others are lockup shop, weight scale and basic store equipment.

  • delivery van or bus
  • paper egg crates
  • lockup shop (optional)
  • weight scale
  • basic store equipment
Equipment Customers Staff Requirements Egg Sizes
Delivery van Egg retailers Driver Large
Paper crates Grocery stores Bus Boy Medium
Lockup Store Supermarkets Store Attendant Small
Store equipment Market women Owner of Business  
Weight scale Bakeries    

Egg Supply Business Delivery Van

To start egg supply business you need a few equipment. The primary equipment is the delivery van. This effectively reduces transportation costs on delivery.

Some small distributors use their personal cars or hire transport. This will cut into your profit margin. Any delivery van with good capacity will do nicely. Average cost of a used bus is from N1 million Nair to N 2.5 million

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Paper or Plastic Crates

You should determine either paper or plastic crates to convey the eggs. Most distributors use only paper crates because they are cheaper, recyclable and handy. Plastic crates are more durable than paper however impracticable.

Lease a Store

Some egg suppliers work out of a small store. The store should be secure from rats or rodents with good door. Some stores have shelves while others place them on the ground.

Find a Layer Poultry Farm

Make sure you find a farm with large number of layer hens. The price of eggs are generally fixed based on current prices, size of eggs. Most farms sell a minimum of 10 crates to wholesalers.

Things to consider is distant of farm to your store and market base. The further the farm the more money you spend on transportation.

Profit

As stated earlier the amount of profit is about ¼ of each crate supplied. For instance if the crate is N1000 naira you can make 250 per crate. This is just a rough estimate to show the earning potential.

Therefore the more crate you can afford to buy and sell the higher your profit margin. Other things to consider are transportation costs, size of eggs.

Egg size

The price of eggs differ based on size. You will find three sizes large, medium small eggs. The small eggs are the cheapest while the larger eggs costliest.

Some supplier mix the medium with small eggs for better profit. However good practice is to separate the eggs according to size and price.

Business Card

Another effective marketing strategy is to print business cards. Most retailers already have suppliers with years of track record.

To enter the market you can leave your card with retailers in the off chance the supplier disappoints them. The card also creates awareness, offer easy contact through your phone number.

Marketing

Marketing is the most important aspect of the business. Without an effective marketing strategy your business will fail. Marketing involves word of mouth, advertisement, door to door.

Other strategies includes discounts, pay latter, and better prices. You need a complementary card or storefront.

Marketing Strategy for Egg Supply Business

  • word of mouth
  • advertisement
  • door to door
  • discounts
  • credit line
  • offer better prices
  • use complementary card
  • sell from your own store

Sell to Retailers

Your target market are egg retailers, fast food restaurant, bakeries. Approach provision store owners, cooked noodles sellers, market women, hotels, canteens.

Who our Your Customers

  • egg retailers
  • fast food restaurant
  • bakeries
  • grocery stores
  • supermarkets
  • provision store owners
  • cooked noodles sellers
  • market women
  • hotels
  • canteens

Staff Requirements

Most egg suppliers work alone or with a bus driver. The business is easily a one man show however you need someone to help in loading/offloading the eggs.

By Femi

webmaster with passion for good content

7 thoughts on “Egg Distribution: How to Start Egg Supply Business in Nigeria or Anywhere”
  1. How To Start A Lucrative Egg Distribution Business (2020): Ultimate Guide For Beginners

    Eggs distribution is a hidden gold mine but unfortunately, only a very few people knows that this business can make you rich over time. The current retail price of a crate of egg is between N900 – N1,100. Now, if you buy from us at farm gate price of N650 per crate and you sell for N1,100 per crate, that is a whooping #450 naira gain on top of each crate, calculate that times 1,000 crates and you will see the profit potential of this business.

    All you need to do is, look for a reputable farm like our farm that is capable of supplying you steadily and without transportation cost. We have 33,240 matured laying birds and 17,860 pullets at 18 weeks. We collects 750 crates of eggs per day from the 33,240 birds. That is at 84% egg production. Once all the birds(51,100 birds) are in full laying mode we will collect up to 1,200 crates of eggs or more per day.

    You can reach us on_ 08154695379…
    Or WhatsApp us on this link 🔗 http://wa.me/2348154695379

    FARM GATE PRICE
    LARGE: ——————– N650 Per Crate
    MEDIUM: —————– N550 Per Crate
    SMALL: ——————– N450 Per Crate

    We guarantee you of “zero risk purchase” experience in our farm. We do our best to ensure every customer is very satisfied by our products. We make sure you get your product as specified and on time. We ensure you get exactly what you order for and also make sure you get your items in time.

    Our address is Number 217, Ago Fulani, Camp Ijebu East Local Government Area, Ogun State, Nigeria. We compensate for transit related mortality, but you must check in front of the driver, inform us.

    In Nigeria, poultry business is an immensely profitable one for any entrepreneur to venture into. But while growing chickens can be a very lucrative investment, venturing into the distribution and supply of eggs to buyers is a lucrative segment of the poultry business for anyone to start up a profitable enterprise in.

    A lot of people do not believe that there is very huge business opportunity in connecting egg buyers and egg sellers. Many poultry farmers who produce eggs on their farms do not have much time to market in a bid to reach out to potential buyers because of the task of managing the farm. This burden is taken off by egg distributors who come into poultry farms to purchase crates of eggs at reduced price and sell to market men and women (who retails to end consumers) at a profit.

    Eggs are largely consumed by a wide range of people and organisations in Nigeria ranging from restaurants, hotels, boarding schools, events, families, and individuals. It is even more interesting to know that in the production of most confectioneries, eggs are used in the manufacturing process, and as such, their demand and usage in Nigeria remains astronomical.

    Let’s go into the main business of the day..!

    STARTING THE EGG SUPPLY BUSINESS

    How do you go about the eggs supply business in Nigeria? It is simple, we have compiled some practical steps to follow. Here are they:

    STEP ONE. IDENTIFY YOUR TARGET MARKET
    The truth is sourcing for eggs is not a problem. You may even have your own poultry where you pick eggs from. However, what is very important is to identify/locate your target market. Who are you selling to? Or who is buying from you?

    As long as egg is concerned, its target market is very large and demand is always on the increase. The good thing is, there are so many outlets where you can market your product (eggs). Places like restaurants, hotels, school hostels, canteens, baking factories, boarding schools, open markets etc. Meet them one on one and offer to be their egg supplier with mouth-watering benefits attached.

    Once you have an agreement with the places listed above, all you need to do is to supply them anytime they order. Knowing when next your customers will need a supply is something you must also enquire. That will keep you busy into meeting demand.

    STEP TWO: SOURCE FOR A RELIABLE POULTRY FARM THAT PRODUCES LARGE EGG VOLUMES
    Having located a potential market for your eggs business, the next step is to identify at least two or three farms to pick up eggs for sale. A proper survey and investigation might be needed here so as to find a farm that is consistent and reliable. You should look for farms that can give you the eggs at very affordable, reasonable and competitive prices.

    The price of medium size eggs ranges from N600 to N650 per crate. Extra-large goes for N700 to N750 per crate. Other factors you might need to put into consideration before making decision are size of the eggs, colour (Brown or White), distance to market and means of transporting the eggs.

    STEP THREE: RAISE ADEQUATE START-UP CAPITAL
    One of the advantage of this business is that it doesn’t require much start-up capital. Although some farms may give you certain amount of crates of eggs on credit after you have been tested over time, nevertheless you will need to have your capital with you when starting egg distribution business. Your start-up capital will be used in the initial purchase of eggs from the poultry farm, purchase of crates and if possible an egg delivery van.

    STEP FOUR: GET AN EGG DELIVERY VAN
    Most retailers prefer distributors who would help to convey their goods (eggs) to their shop. This is because most of them are afraid of recording a high number of cracked eggs during transportation of the egg from the distributors warehouse to their shop.

    Rather than having a point of sale where buyers come to purchase the eggs, it is more profitable if you make it mobile by taking it to the doorsteps of customers who buy it in large quantities. If you can afford to get a delivery van, then go ahead. If you do not have a personal van or truck, you can hire one for a start. Asides careful driving, compact arrangement of egg crates will minimize the amount of cracks.

    STEP FIVE: SETUP A STORAGE FACILITY (WAREHOUSE)
    Demand for eggs fluctuates. Sometimes you end up purchasing more eggs than is eventually sold. There comes the need for an egg storage facility. You’ll need to get a shop in a strategic market place where it will be easily accessible for your customer as this will give your egg marketing business the needed exposure.

    STEP SIX: PURCHASE OTHER WORKING TOOLS (CRATES)
    This can be paper or plastic crates. It is advisable to purchase the paper crates because it is more protective and reduced the number of cracks from egg transportation. Paper crates are also cheaper than plastic crates. It, however, gets damaged quickly than plastic ones. The total number of the crates you’ll need however depends on the volume or quantity of eggs you are distributing to your customers.

    STEP SEVEN: GET A COMPLIMENTARY CARD
    You need to have a professional looking business card, with your contact details and address clearly printed. Issuing a complimentary card to your potential customers is a good way to help them patronize your product. You never can tell who else might get in contact with your card. One card can get to more than one individuals.

    STEP EIGHT: HIRE EMPLOYEES
    You cannot be the one driving and at the same picking up eggs from the farms, supplying eggs to the customers and all other things involved. You will need to employ one or two persons to help you out which leaves you to do much of supervision. This will inject efficiency to your work and ensure quick delivery of eggs to customers.

    COST OF STARTING THIS BUSINESS
    About 80% or more of your capital will be used to acquire an egg delivery van. Once you get that out-of-the-way, then getting the eggs with N70, 000 will be reasonable. As you go, you grow bigger into the egg supply business thereby realizing your start-up capital within a short period. No matter how small your finance is, you can start-up something. We believe in start small and end big.

    For Order Placements/Bookings and more Info, Call: 08154695379…
    OR WhatsApp us on this link: http://wa.me/2348154695379
    https://www.facebook.com/Nigeria-Livestock-And-Poultry-Farms-Limited-109959420764525/

    Share this post to someone you care about because you will be giving such person what money cannot buy.

    Cheers!

  2. I’m a student of unilorin and would like to start up this business,my Target would be students like me,

  3. POULTRY And LIVESTOCK .08032178904. CONTACT THEM FOR EGGS BIRDS ,POINT OF LAY,OLD LAYERS,BROILERS PIGS,RABBITS,COWS,GOATS,ETC They DISTRIBUTES TO ALL PART OF NIGERIA to Wholesalers AND TO ENDS USER’S. email .zangofarms750@gmail.com based on customers comitment

  4. How to Start Eggs Supply Business to Shops in Nigeria.
    Call or Whatsapp us on
    ☎️23491-5528-6426
    Egg supply business is certainly one of the fastest ways of getting rich in the poultry business. You can completely rely on this business to take care of your bills. Many Nigerians who are engaged in this business can testify that this business rakes in a substantial amount of money to their bank account.
    Due to the high demand for eggs, you’re sure of making a huge profit from this business if you choose to take action after reading this step by step guide.
    Capital Intensive
    There’s no business that doesn’t require capital. No matter what the business is, there’s always a minimum capital and Egg supply business isn’t an exception. To effectively start this business, a minimum of N800,000 is required.
    With just N70,000 You can buy as much as 100 crates of eggs. So imagine buying a crate of egg for 750 or less from a farm and you sell for as high as N850 per crate, you can quickly do the math to see how much you’ll make from more than 100 crates. If you can sell 1000 crates weekly, you’ll be making nothing less than 750,000. That’s cool cash, right?
    Get a Business Vehicle
    Although getting a vehicle isn’t necessary it will save you lots of stress. Many Nigerians who are just starting this business use wheelbarrows for this business. But this method will limit your movement. Getting a vehicle will help you cover more areas than the former option. Cost of purchasing a vehicle constitutes almost 85% of your total capital. Then maybe, 5% can be used for fueling purpose. As the business grows, you can begin to service your vehicle periodically to avoid breakdown.
    Find Your Target Market
    Getting eggs from farms isn’t a big deal, but getting the right customers to supply should be what you should consider. Your target area should be an environment that is densely populated. It could be marketed anywhere that favours your business. Once you know where to supply and have contacts of one or two customers, you’ll only need to go to that area to distribute the eggs.
    Also, to start buying and selling eggs, you should connect with one or two farmers who are going to be your constant supplier of eggs. you can register with any farm of your choice and be consistent in your sales.
    Other Important Working Tools
    The most important tool needed for egg supply business is empty crates. The crates can be of a paper type or plastic type. You can buy 1000 pieces of crates for N7000 if you choose to buy the paper crates and the number of crates needed for your business depends on you. It is advisable to buy paper crates as it protects the eggs from unusual cracks and it is cheaper. However, it gets damaged faster than the plastic type.
    Estimated Profit in Eggs Supply Business
    In this huge goldmine, you are certainly your own boss and you decide the profit you want to make in a week or in a month. Depending on the size of eggs you choose to buy, you’ll gain roughly N200 on a crate of egg if you choose to be a wholesale seller but if you choose to be a retail dealer, you can be making as much as N500 on a crate of egg. If you choose to sell 200 crates weekly, you’ll be making N20,000 weekly and N80,000 monthly.
    If you set a target to sell 1000 crates weekly, it means you’ll make a profit of N100 x 1000 crates = N100,000 weekly and multiplying this by 4 gives you N400,000 monthly. If you deduct all your expenses for the month, you’ll still have a substantial amount in your bank account.
    Buying and selling eggs might look like a dirty and an odd business but if you look at the profitability of the business, you’ll reconsider your steps. You can start small and later on move to large-scale egg supply business.
    Call or Whatsapp us on
    ☎️234-91-5528-6426
    We ship Nationwide.

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